Graphic: Ajay Negi/MintThe gargantuan non-performing assets (NPAs) have massively dented the net worth of India’s public sector banks. Although PSU bank recapitalisation dates to the 1990s, it became vigorous 2010-11 onwards. The government is finding it increasingly difficult to recapitalize public sector banks due to the compulsion to adhere to the stringent budgetary deficit benchmarks. Autonomy for banks: For a durable remedy to NPAs, PSU banks must be given adequate functional autonomy and operational flexibility. Modern HR management: The public sector banks’ approach to the entire HR process needs overhauling and made bank-specific.

Source: Mint January 25, 2018 02:48 UTC